location

[barrelcharger]

I am a young real estate investor with some extra money to invest. My realtor has a small 800 sq ft. laundry mat unfinshed space for lease. It is in the urban area of town and the closest other mat is 15 blocks away. The location has good visiblity and will rent for $700.00 mnth with the first 3 months free. With 1,500 bucks I can have inside beautiful ( I have construction company). It is set up for 8 washers and 10 dryers and I found the whole set-up used for 15,000.00. I also have 8,000 impact fee. Normal utlities. I have a good feeling about it, but I worry about the size? I wouldn't mind opening and closing and maintaining it. It would be unattended and I have a good feeling about it. Thanks for the thoughts, sorry so long.

[SecretarytoBraveDave]

How many turns per day does it take for the 8 washers to give you a good feeling?

[barrelcharger]

58 turns a day average combination of washer and dryer for the month at 1.75 a load. i am not looking to make a killing, but I am not doing it for 100 dollars a month. i would be satisfied with 500.00/ 1000 cash profit a month. Is this unreasonalbe for a mat this size.

[SecretarytoBraveDave]

Eight machines that vend for 1.75 may exceed 5 tpd, but you shouldn't presume more (even though possible) because there is no track record for this location. At 5tpd your gross would be less than 3K per month. If you saw this average of use you may be able to keep your expenses tight and net that 1K per month your looking for. However, you have not added in your time in this, or if you plan to sub some of the work out you will cut your portion down considerably. To me this small mat would be more trouble than its worth.

[barrelcharger]

This is a small mat but it is an easy way to test the waters (I like the mat idea), and the area is good (low income, college students in a historic southern town-read in- big old houses, limited area for large mats--and is 5tpm for a urban area alot? Thanks!!

[SecretarytoBraveDave]

My personal opinion is that while testing the waters with an eight washer business is good in theory, the probability of this location and size to be really successful is doubtful.

First, if the area warrants an additional laundry, determine what the area needs in additional services. I don't think an 8 washer facility will offer much incentives for laundry customers to abandon their current place of doing business. While location is a huge factor in the success of a laundry it certainly isn't the only factor.

4.5 tpd is the national average, although many mats sees higher traffic many of the mats have many more machines to offer. Thus the larger drawing card to entice the customers.

You said you can get all the equipment for 15K, what are you purchasing? You feel certain the upgrade inside will only cost 1500 dollars which I think your estimate for the upgrade is low, but if you are a contractor in the building industry, you have more knowledge than me.

If you want to get your feet wet, try to find a location that is currently open. Your 25K will be better invested in a location that has a track record or into an area that will warrant more machines for your venture.

[petefritz]

I have a mat in similar size, little more rent, and get 18-20k profit a year from it unattended. Not getting rich, but worth owning. 800 sq ft is a bit small though, can you get 1000 sf?.
I have 4 40's 1 55, 2 25's 2 neptunes, 6 tops, 9 stacks. 800 sq ft plus a 40 SQ ft for the water heater, storage. No ADA bathroom. To do buildout now to code 800 sf is really not big enough.

P.S $1500 won't go very far. It will cost you that just for the gas line work.

[barrelcharger]

The space is plumbed with inline water heaters and all venting and electrical is completed. I need to sheetrock one wall and dress it up. Thanks for everyone's info. It's good to hear from people in the buisness.

[cardinal]

Don't buy from coinopusa